Bill > SB2

This bill revises how tax increment financing (TIF) districts are treated when calculating property tax levies for local governments. Specifically, the bill clarifies that the release of incremental taxable value from a TIF district will not be considered "newly taxable property" when local governments calculate their maximum allowed property tax levy. Tax increment financing is a development tool that allows municipalities to redirect future property tax revenues from a designated area to fund infrastructure or economic development projects. The bill amends two existing sections of Montana law (15-10-420 and 20-9-336) to ensure that when a TIF district expires or changes, the released property value does not automatically increase the amount of property taxes a local government can collect. This prevents local governments from gaining additional tax revenue simply because a TIF district's incremental value is released back into the general tax base. The bill will apply to TIF districts created after its effective date, and includes a coordination instruction that renders the bill void if another related bill (Senate Bill No. 117) is also passed. The overall intent is to provide more clarity and consistency in how local governments calculate their property tax levies in relation to tax increment financing districts.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/20251/LC0081